If you’re going to buy certificates of deposit from a broker, do some due diligence before you sign the dotted line. Federal Deposit Insurance Corporation’s regs mandate that brokers who sell CDs to their clients to notify the agency. FDIC makes it easy to discover if your broker complied with its rules. Just call the agency’s consumer info center at 1-800-934-3342. You also can request a copy of its list of “deposit brokers” by calling the agency’s public info center at 1-800-276-6003. Bear in mind, however, that just because your broker registered with FDIC doesn’t mean the agency endorses it.
But remember, the fact that a broker has registered with the FDIC does not mean that the FDIC endorses that broker. The National Association of Securities Dealers’ has a particularly helpful Web site that can help you discover what you need. It’s address is http://www.nasdr.com.
